JAKARTA (TheInsiderStories) – Good morning! Facing the uncertainty of trade negotiations with Donald Trump, China plans to give a high-level political offer by rationalizing his re-election in 2020 as a pretext for capturing United States (US) President to the peace table.
The strategy will be a new choice for China to perpetuate negotiations and to avoid penalties imposed by Trump since March last year. The country also called on the US to immediately cancel planned to sell weapons to Taiwan with worth US$2.2 billion, which includes battle tanks and antiaircraft missiles.
Turning to India, Trump said on Tuesday (07/09), that US needed to fight the nation in the trade sector. In a tweet, Trump said: “India has long had a field day putting tariffs on American products. No longer acceptable!”
Earlier this year, Trump abandoned preferential status in India which freed billions of dollars worth of products made there from US levies. While India has tariffs for US products such as Harley-Davidson motorbikes and US-grown apples. In June, he opined India’ 50 percent levy on Harley-Davidson bicycles was “unacceptable.”
In the US, total vacancies exceeded the number of jobless by 1.44 million. Based on the Labor Department data, America has added 224,000 jobs in June, rebounding from a disappointing 72,000 increase the previous month. A positive June recruitment showed the economy was not slowing and easing pressure on plans to cut interest rates by the Federal Reserve (Fed) at its July meeting.
Today, Fed’ chairman Jerome Powell is giving testimony to the first-semester monetary policy to the House Financial Services committee and on Thursday to the Senate banking panel.
Still from abroad, Morgan Stanley cut the allocation of investment in the global capital market to its lowest position in five years. The company also cut its recommendations for global capital markets to underweight, as fears that the positive impact of looser monetary policy will be covered by the negative impact of weakening economic growth.
From the country, former presidential candidate, Prabowo Subianto has submitted requirements to repatriate the leader of the Front Pembela Islam Rizieq Shihab if the elected president Joko Widodo wants to meet him. Subianto also asked the government to release a number of supporting figures, who were arrested for being caught in a legal case.
Meanwhile, Special Task Force for Upstream Oil and Gas Activities recorded production data of oil and gas lifting in the first half of 2019 reaching 1.81 million barrels of oil equivalent per day, equivalent to 90 percent of the 2019 State Budget’ targets. Total lifting consists of oil lifting of 752,000 barrels oil per day and gas channel lifting of 5.913 million standard cubic feet per day.
Yesterday, the Jakarta Composite Index closed high to 6,388.31 or up 36.5 points from yesterday. The rising was supported by the infrastructure sector and the financial sector which rose 1.34 percent and 0.75 percent respectively.
Furthermore, Rupiah closed down 0.15 percent to 14,130 per US dollar. The weakening of the Rupiah seen since the beginning of last week and is predicted to continue today. Market expectations the Fed to reduce its benchmark rate and investors still wait and see waiting for US GDP’ and industrial output data to be released today.
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia